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We develop a tractable equilibrium model for price formation in intraday electricity markets in the presence of intermittent renewable generation. Using stochastic control theory, we identify the optimal strategies of agents with market…

Pricing of Securities · Quantitative Finance 2021-07-01 Olivier Féron , Peter Tankov , Laura Tinsi

Demand response (DR) programs play a crucial role in improving system reliability and mitigating price volatility by altering the core profile of electricity consumption. This paper proposes a game-theoretical model that captures the…

General Economics · Economics 2024-11-26 Arega Getaneh Abate , Rosana Riccardi , Carlos Ruiz

In electrical distribution grids, the constantly increasing number of power generation devices based on renewables demands a transition from a centralized to a distributed generation paradigm. In fact, power injection from Distributed…

Systems and Control · Computer Science 2017-06-30 Riccardo Bonetto , Michele Rossi , Stefano Tomasin , Carlo Fischione

We propose a novel method to find Nash equilibria in games with binary decision variables by including compensation payments and incentive-compatibility constraints from non-cooperative game theory directly into an optimization framework in…

Optimization and Control · Mathematics 2017-10-10 Daniel Huppmann , Sauleh Siddiqui

In this paper, an aggregate game approach is proposed for the modeling and analysis of energy consumption control in smart grid. Since the electricity user's cost function depends on the aggregate load, which is unknown to the end users, an…

Economics · Quantitative Finance 2017-03-22 Maojiao Ye , Guoqiang Hu

Renewable energy has achieved high penetration rates in many areas, leading to curtailment, especially if existing network infrastructure is insufficient and energy generated cannot be exported. In this context, Distribution Network…

Signal Processing · Electrical Eng. & Systems 2019-08-28 Merlinda Andoni , Valentin Robu , Wolf-Gerrit Fruh , David Flynn

The integration of distributed energy resources (DERs) into wholesale energy markets can greatly enhance grid flexibility, improve market efficiency, and contribute to a more sustainable energy future. As DERs -- such as solar PV panels and…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Jun He , Andrew L. Liu

The wide deployment of distributed renewable energy sources and electric vehicles can help mitigate climate crisis. This necessitates new business models in the power sector to hedge against uncertainties while imposing a strong coupling…

Systems and Control · Electrical Eng. & Systems 2024-02-05 Dongxiang Yan , Tongxin Li , Changhong Zhao , Han Wang , Yue Chen

We develop a stochastic game-theoretic model for intraday dispatch of grid-scale battery energy storage systems (BESSs). We assume that each BESS operator competitively manages her state-of-charge to maximize energy arbitrage revenues,…

Optimization and Control · Mathematics 2026-05-11 Ruimeng Hu , Mike Ludkovski , Hezhong Zhang

The increasing penetration of distributed energy resources has sparked interests in participating in power markets. Here, we consider two settings where Virtual Power Plants (VPPs) with some flexible resources participate in the electricity…

Systems and Control · Electrical Eng. & Systems 2025-04-08 Peng Wang , Xi Zhang , Luis Badesa

We study an energy market composed of producers who compete to supply energy to different markets and want to maximize their profits. The energy market is modeled by a graph representing a constrained power network where nodes represent the…

General Economics · Economics 2022-12-01 Leonardo Massai , Giacomo Como , Fabio Fagnani

In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers' strategies integrate the coupling of…

Mathematical Finance · Quantitative Finance 2015-01-15 Mireille Bossy , Nadia Maizi , Odile Pourtallier

The ongoing shift towards decentralization of the electric energy sector, driven by the growing electrification across end-use sectors, and widespread adoption of distributed energy resources (DERs), necessitates their active participation…

Machine Learning · Computer Science 2026-04-23 Patrick Wilk , Ethan Cantor , Yikui Liu , Jie Li

Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged…

Physics and Society · Physics 2009-11-11 Ettore Bompard , Yuchao Ma , Elena Ragazzi

We propose a mean field game (MFG) framework to model the evolution of renewable energy production in competitive electricity markets. Producers interact through the spot price while optimising their profits under production, installation,…

Optimization and Control · Mathematics 2026-03-25 Luciano Campi , Zhuoshu Wu

Electricity markets are transforming from the dominance of conventional energy resources (CERs), e.g., fossil fuels, to low-carbon energy resources (LERs), e.g., renewables and energy storage. This work examines market mechanisms to…

Systems and Control · Electrical Eng. & Systems 2023-08-10 Dongwei Zhao , Sarah Coyle , Apurba Sakti , Audun Botterud

In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme under single-contract and multi-contract market setups, both as an assignment game, and a special class of coalitional games. {The proposed market formulation…

Computer Science and Game Theory · Computer Science 2023-01-31 Aitazaz Ali Raja , Sergio Grammatico

Demand-side management is very critical in China's energy systems because of its high fossil energy consumption and low system energy efficiency. A building shape factor is introduced in describing the architectural characteristics of…

Systems and Control · Electrical Eng. & Systems 2022-08-30 Limeng Wang , Ranran Yang , Yang Qu , Chengzhe Xu

The integration of microgrids that depend on the renewable distributed energy resources with the current power systems is a critical issue in the smart grid. In this paper, we propose a non-cooperative game-theoretic framework to study the…

Systems and Control · Computer Science 2016-11-18 Juntao Chen , Quanyan Zhu

Data injection attacks have recently emerged as a significant threat on the smart power grid. By launching data injection attacks, an adversary can manipulate the real-time locational marginal prices to obtain economic benefits. Despite the…

Cryptography and Security · Computer Science 2016-04-04 Anibal Sanjab , Walid Saad